Bulls fail for a second time - but outcome is more damaging
There was no doubt as to where control lies in the market after today's finish. The second reversal opportunity which was playing at the 61.8% retracement of the June-August rally has failed, and with today's volume, ranked as confirmed distribution. It was the same for the Nasdaq, S&P and Russell 2000. We will start with the Russell 2000. It had the most support to work off, but it has cleanly cut through the Fib retracement zone. It still has the relative performance advantage over the Nasdaq and S&P, but today's candlestick suggests there will be further losses tomorrow. There is some support around $170, which is the next target before the June low comes into range.